Supply chain software firm Logility explores sale, sources say
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A boardroom is seen in an office building in Manhattan, New York City, New York, U.S., May 24, 2021. REUTERS/Andrew Kelly/File Photo
(This Dec. 11 story has been corrected to say that the letter was sent on Monday, not Tuesday, in paragraph 7)
By Milana Vinn
NEW YORK (Reuters) - Logility Supply Chain Solutions, a maker of artificial intelligence-powered software that helps companies manage their inventories and supply chains, is exploring a sale, according to people familiar with the matter.
The Atlanta, Georgia-based company, which was previously known as American Software and has a market value of about $400 million, is working with investment bank Lazard to gauge takeover interest from potential buyers, which include private equity-backed technology companies, the sources said, requesting anonymity as the discussions are confidential.
The deliberations are at an early stage and the sources cautioned that no deal is guaranteed. The company did not immediately respond to a request for comment.
Shares of Logility jumped nearly 11% to touch a 52-week high after Reuters reported on the sale process on Wednesday.
Logility provides software and technology tools that help large companies manage their inventory, manufacturing processes and supply chains. The company has more than 550 clients in 80 countries, according to its website.
Its customers include large corporations including discount retail chain Big Lots, Twinkies maker Hostess Brands, underwear brand Jockey International, industrial giant Johnson Controls, and aerospace supplier Parker Hannifin.
On Monday, investment firm 2717 Partners sent a letter to the company’s board, pushing them to explore strategic options.
In October, the company rebranded itself as Logility and started trading under a new ticker symbol on the Nasdaq. Earlier this year, Logility eliminated its dual-class share structure, which previously allowed co-founder James Edenfield to control the company through his ownership of the special class of shares.
Edenfield stepped down from his role as executive chairman of Logility in February.
(Reporting by Milana Vinn in New York; Editing by Daniel Wallis)
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